Finance & Leasing Association4 December 2013
Figures released today by the Finance & Leasing Association (FLA) show growth of 16% in the number of consumer used cars bought using dealer finance in October 2013, compared with the same month in 2012, contributing to a rise of 14% over the last twelve months to almost 890,000.
The rate of growth in the number of new cars bought by consumers using dealer finance was 4%, but volumes were up by 15% in the three months to October compared with the same period last year. Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said: “The used car finance market has reported strong growth since April of this year.
It’s on target to record its highest level of annual new business volumes in more than a decade. “Growth in the consumer new car finance market was in line with the increase in private new car sales in October and follows a particularly strong performance in October 2012 when volumes increased by 40%. The percentage of private new car sales financed by FLA members in the twelve months to October 2013 remained steady at 74.2%.”
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| Oct-13 |
% change on prev. year |
3 months to Oct 2013 |
% change on prev. year |
12 months to Oct 2013 |
% change on prev. year |
|
| New cars | ||||||
| Value of advances (£m) | 942 |
+13 |
3,515 |
+24 |
11,722 |
+30 |
| Number of cars | 62,281 |
+4 |
230,872 |
+15 |
784,359 |
+22 |
| Used cars | ||||||
| Value of advances (£m) | 830 |
+22 |
2,370 |
+23 |
8,469 |
+18 |
| Number of cars | 83,720 |
+16 |
244,110 |
+19 |
889,490 |
+14 |
| Table 2: Cars bought on finance by businesses | ||||||
| Oct-13 |
% change on prev. year |
3 months to Oct 2013 |
% change on prev. year |
12 months to Oct 2013 |
% change on prev. year |
|
| New cars | ||||||
| Number of cars | 37,114 |
+0 |
96,963 |
+2 |
395,373 |
-1 |
| Used cars | ||||||
| Number of cars | 5,273 |
-40 |
11,036 |
-28 |
60,670 |
-4 |
ENDS Note to editors: In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £58.8 billion of this was in the form of consumer credit, 30% of all unsecured lending in the UK. And £23.3 billion of it supported the purchase of new and used cars, including more than 70% of private new car registrations.
